The volume of European venture financing climbed for the third month in a row, putting the total for 2012 ahead of 2011 by a good 25%, according to the latest Go4Venture newsletter. Despite a worrying flat-lining in VC exits, October proved to be a record month for investments, says Go4Venture. There were seven deals of greater than EUR 20 million.
The current drivers
– VCs are investing in later and larger rounds in order to achieve the kind of absolute returns that will enable them to stay relevant in the eyes of increasingly cautious LPs
– US-based VCs are providing the financial firepower for large and growth stage VC transactions in Europe, namely Accel Partners, Canaan Partners, Redpoint Ventures, Stripes Group. Many of the newly funded companies were initially funded by European-based funds such as A Plus Finance, Balderton, CM-CIC, Creathor Venture, Eden Ventures, Idinvest and Index Ventures.
– Growth equity financing is the hot trend in Europe rather than early stage venture